It is common knowledge within the world of investing that diversification is the key to a healthy financial future.  Diversification equals balance. It is likely that one portion of the portfolio may thrive while another portion may be on the decline.  

Gold and silver are known for their “safe haven” status and are typically used in an investment portfolio as a way to hedge against inflation, banking crisis, dollar collapse, stock market volatility etc.  As you would diversify across many assets in your portfolio it is important to do the same inside of your gold portfolio by allocating your dollars in the precious metals world across the entire asset class.

The asset class of precious metals includes gold and silver in a range of types from bullion products to rare gold coins.  At ITM Trading we believe in a three tiered system.  This system of allocation will provide your portfolio with asset protection as well as growth to address your particular goals and comfort levels.

Asset Protection:
Bullion products:
Gold & Silver American Eagles & other common bullion coins
Gold Swiss Francs & other foreign gold coins
Common Date Double Eagles

Asset Protection with Growth Potential:
Better dated gold coins: (coins with populations between 1,000 to 15,000)
$20 Liberties & $20 Saint Gaudens
$10/$5/$2.5 Liberties & Indian Heads

Growth Potential:
Rare gold coins: (coins with populations less than 1,000)
$20 Liberties & $20 Saint Gaudens
$10/$5/$2.5 Liberties & Indian Heads


Allocate 20% of your precious metals dollars in Bullion type products:

Gold and silver bullion coins and bars track the spot market in lock step 24/7. This type of gold and silver is considered asset protection as it generally keeps up with inflation over the long-term. Sure this category can have short-term peaks and valleys, but long-term, gold and silver bullion have held purchasing power consistent over hundreds of years. Have you ever heard the saying that an ounce of gold has always been able to buy a nice men’s suit?

Allocate 60% of your precious metals dollars in Better Dated gold and silver coins:

Pre-1933 Gold and silver coins have a history of outperforming the bullion markets throughout the last 40+ years, and sometimes by large margins. While still a conservative investment this type of asset is not only a hedge, but also an opportunity for growth, faster growth than bullion in hot coin markets. These types of coins also offer other advantages that bullion does not, for more info on this subject be sure to speak with your precious metals consultant.

Allocate 20% of your precious metals dollars in Rare Dated gold coins:

Pre-1933 gold coins that are considered to be rare apply a more aggressive strategy. While they tend to stay flat and hold their value most of the time, they have a tendency to explode when demand gets hot due to their very limited supply.

We believe that owning physical precious metals is a long-term hold. As long as an asset class is in a long-term positive trend you will want to hold on to it until the long-term trend reverses. Additionally, each person’s strategy will be different based upon one’s goals and objectives, therefore you should use this as a guideline. Our precious metals consultants have extensive knowledge of the precious metals markets and can assist you in applying these principles to your goals and objectives.

If you would like to understand the strategy in full, call one of our precious metals consultants at 1-888-OWN-GOLD (1-888-696-4653).